This form is used when an Assignor transfers, assigns, and conveys to Assignee an overriding royalty interest in the Leases and all oil, gas, and other minerals produced, saved, and marketed from the Lands and Leases equal to a percentage of 8/8 (the Override ).
South Dakota Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form is a legal document used in South Dakota when transferring the rights to receive royalty payments from multiple oil or gas leases without reducing the proportionate interest. This assignment agreement applies to situations where an assignor wants to transfer their overriding royalty interest (ORRIS) in multiple leases in South Dakota to an assignee, while ensuring that the proportionate reduction of the interest does not occur. This long-form document provides a detailed and comprehensive framework for transferring these rights. Keywords: 1. South Dakota: This refers to the specific geographical location where the assignment of overriding royalty interests is taking place. South Dakota is known for its oil and gas reserves. 2. Assignment: The act of transferring ownership or rights from one party (assignor) to another (assignee). In this case, it pertains to the transfer of overriding royalty interests. 3. Overriding Royalty Interest (ORRIS): It represents the interest in the oil or gas production obtained from a lease, which is separate from the operating or working interest. ORRIS owners receive a percentage of the revenue generated without the burden of covering operational expenses. 4. Multiple Leases: Refers to more than one oil or gas lease that the assignor holds in South Dakota. The assignment agreement covers the transfer of ORRIS across multiple leases. 5. Proportionate Reduction: This refers to the reduction of the assignor's share of the overriding royalty interest in the leases proportionate to the number of leases involved. In this long-form agreement, no reduction occurs, meaning the assignee shall receive the full ORRIS without dilution. Types of South Dakota Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form: 1. Individual Assignment: This type of assignment involves a single assignor transferring their overriding royalty interests in multiple leases to an assignee. 2. Corporate Assignment: In this case, a corporation acts as the assignor, transferring its overriding royalty interests in multiple leases to the assignee. 3. Family Assignment: This type of assignment occurs within a family, where multiple family members collectively assign their overriding royalty interests in various South Dakota leases to the assignee. 4. Trust Assignment: If the overriding royalty interests are held within a trust, this assignment involves the trustee transferring the interests from multiple leases to the assignee. 5. Partnership Assignment: In situations where overriding royalty interests are jointly owned by partners, this assignment allows for the transfer of those interests collectively to the assignee. It is essential to consult legal professionals when dealing with South Dakota Assignment of Overriding Royalty Interest for Multiple Leases with No Proportionate Reduction — Long Form, as the specific details and requirements may vary in individual cases.
